Grayson County, Texas Redeemable Tax Deed Guide

Introduction

Grayson County sits in north‑central Texas along the Red River. The county seat is Sherman and the major towns include Denison, Van Alstyne and Gunter. This guide explains how Grayson County conducts its redeemable tax deed sales. You will learn when auctions happen, how to register, what the bidding process looks like, and why this county’s growing economy makes it appealing for real estate investors.

What Is a Redeemable Tax Deed?

Texas uses a redeemable tax deed system. When property taxes go unpaid, the county sells a deed to the property at auction. The winning bidder does not gain full ownership immediately; instead, the original owner has a limited time to redeem the property by paying the tax debt plus a penalty. If they redeem, the investor gets a high return. If they do not, the investor can request a deed to the property. In Grayson County, tax sales are handled online through GovEase.

Important Details

Here is a quick overview of key facts about Grayson County’s tax sale process. Each cell contains only a short phrase or number to keep the table readable.

Item	Details (keep each cell under 20 words)
Tax Sale Type	Redeemable tax deeds (not lien certificates)
Typical Sale Date	First Tuesday of April, August & November
Sale Time (CST)	Auction opens 1:00 p.m. local time
Registration Required	Yes – online at GovEase
Registration Window	Opens ~3–4 weeks before sale
Location	Online via GovEase; formerly courthouse west door
Redemption Period	2 years for homestead; 180 days for other property
Redemption Premium	25% penalty in first year; 50% in second year for homestead
Bid Procedure	Starts at amount owed; bidders enter overbid amounts; $100 increments
Deposit	Varies; review registration documents for deposit requirements
Payment Deadline	Must pay by 3 p.m. next day via wire or card
Contact	Bruce Stidham, Tax Assessor‑Collector, [email protected]
Updates & Lists	Check GovEase and county website for upcoming sales

Fun Facts About Grayson County

• Population & size: The county covers about 934 square miles and had roughly 140,000 residents in recent years【705538174570634†L50-L66】. That makes it mid‑sized by Texas standards.
  
• Early history: Formed in 1846 from Fannin County, it was named after Peter W. Grayson, a leader in the Texas Revolution. The city of Sherman has served as the county seat since 1847【705538174570634†L50-L66】.
  
• Economy: According to Data USA, the top industries include retail trade, manufacturing and health care. Median household income is around $70,000 and the median home value is roughly $228,300.
  
• Texas Instruments chip plant: In 2021, Texas Instruments announced a $30 billion semiconductor plant in Sherman. The facility is expected to create around 3,000 jobs and produce advanced chips for automotive and industrial uses.
  
• GlobiTech/GlobalWafers project: GlobiTech, a subsidiary of Taiwan‑based GlobalWafers, is building a $5 billion silicon wafer plant in Sherman that could produce 2.4 million wafers per month and employ 1,500 workers.
  
• Lake Texoma & wildlife: The county is home to Lake Texoma, one of the largest reservoirs in the U.S. Eisenhower State Park on its shore offers camping, boating and fishing. Hagerman National Wildlife Refuge spans over 12,000 acres and provides habitat for migratory birds and wildlife.
  

Note: fun facts provide context for readers but are not the focus of this guide.

Attractions & Economic Highlights

Grayson County’s location between Dallas‑Fort Worth and Oklahoma fuels growth. U.S. Highway 75 and U.S. 82 intersect in Sherman, while state highways 11, 56, 91, 289 and planned tollways connect the region to major markets. The North Texas Regional Airport (Perrin Field) offers general aviation services and draws businesses. The Sherman–Denison corridor along U.S. 75 is becoming a major economic engine with new businesses, hotels and residential developments. The county’s strong workforce and low cost of living attract manufacturers and logistics firms. Nearby Eisenhower State Park and Hagerman National Wildlife Refuge provide outdoor recreation such as hiking, birdwatching and boating

Why Grayson County Is Ideal for Tax Deed Investors

Grayson County’s economy is booming thanks to semiconductor investments and robust manufacturing. Job growth and rising home construction are pushing demand for housing and commercial space. This growth creates opportunities because tax‑delinquent properties may be sold at auction when owners fall behind. Texas’ redeemable deed system offers high returns—investors earn a 25% premium if owners redeem within the first year and 50% in the second year Coupled with a short 180‑day redemption period for non‑homestead property, these returns can exceed many fixed‑income investments. The county’s strong economy reduces long‑term risk and increases resale potential.

Auction Process for Tax Deed Sales

Grayson County conducts its tax deed sales online through GovEase. Here’s how it works:

How the Auction Works

1. Create an account and register: Visit GovEase and create a profile. Under My Account, select Register/Add Auctions, find Grayson County and upload the required documents. Registration typically opens 3–4 weeks before the sale, so start early.
   
2. Submit any required deposit: Some counties require a deposit or approval amount. GovEase’s deposit form must be signed; the amount varies by county.
   
3. Review property lists: The county posts a list of parcels 2–4 weeks before the auction. Research each parcel’s location, condition, zoning and liens before bidding. Check appraisal district records for assessed value, and visit the property if possible.
   
4. Pre‑bidding: Once parcels are loaded, you may enter a maximum overbid. The system will place bids in $100 increments until your limit is reached. Pre‑bids remain confidential.
   
5. Live auction: Auctions are held on the first Tuesday of April, August and November at 1:00 p.m. Central Time. Each parcel opens for two minutes; the highest bid wins. In case of a tie, the first bid placed wins.
   
6. Payment: Winners must pay the purchase price (taxes owed plus overbid) by 3:00 p.m. the next day. Payment options include wire transfer or credit/debit card (up to a 3% processing fee). Failure to pay may result in suspension from future auctions.
   

Deed issuance: You will receive a Sheriff’s deed without warranty; properties are sold “as is”. Deeds are mailed within 6–8 weeks. Properties remain subject to statutory right of redemption

Maximum Returns and Expected Yields

Texas law rewards investors when delinquent owners redeem their property. For homestead, agricultural or mineral properties, the owner has two years to redeem. If they redeem in the first year, they must pay the investor the purchase price plus 25%; in the second year the premium is 50% For all other property types, the redemption period is only 180 days, and the owner must pay back the purchase price plus 25% These premiums are not “interest” but a statutory penalty. The potential return depends on the redemption timing and the overbid amount. Because the county requires full payment within one day, investors need liquid funds ready. If the property is not redeemed, the investor can request possession but must still quiet the title before selling or developing.

Open to All Investors and Foreign Participation

Grayson County’s online auction platform allows both U.S. and international investors to bid. There is no residency requirement, but all bidders must meet certain conditions. Under Texas Property Tax Code § 34.015, bidders must obtain a Statement of No Delinquent Taxes from the county appraisal district verifying they do not owe taxes on other property. This rule ensures only compliant taxpayers can participate. Foreign investors should plan ahead, as processing the statement can take several days and may require notarized documents. Successful bidders must pay using U.S. funds and comply with Federal regulations. Grayson County’s accessible online format opens the door to global participation while maintaining safeguards for local taxpayers.

What Due Diligence Entails

Steps for Smart Research

• Review the tax judgment: Confirm the amount owed and property status in county records.
  
• Check property condition: Drive by or use satellite imagery to verify location, access and any visible issues such as flooding or demolition.
  
• Title search: Investigate liens, mortgages, or code violations. The sheriff’s deed does not clear prior liens. Consult the Grayson County Clerk’s records and the appraisal district for legal description and ownership history.
  
• Zoning and permits: Contact the city or county planning department to understand land use restrictions.
  
• Redemption rights: Determine whether the property qualifies for the 2‑year homestead redemption or the 180‑day period
  

Risks of Skipping Due Diligence

Failing to research can lead to costly surprises. Hidden liens may survive the sale; unsafe structures may require demolition; and landlocked parcels may lack access. If you do not verify the property type, you might misjudge the redemption period. Always factor in the cost of taxes, insurance and possible litigation (quiet title actions) before you bid.

Buying Over‑the‑Counter (OTC) Deeds

If a parcel does not sell at auction, it may be offered over the counter. OTC deeds are sold at the tax assessor‑collector’s office for the amount of taxes owed. There is no bidding, and the buyer pays a fixed price plus fees. Investors still earn the statutory penalty if the property is redeemed. OTC lists are usually available on the county website or through the tax office. Contact the tax collector to check availability and procedures.

Benefits of OTC Purchases

OTC purchases avoid competitive bidding and provide fixed returns. The redemption premium is the same (25% in the first year), but there is less risk of overpaying since you only pay the base tax amount. However, selection is limited because better properties usually sell at auction.

Why Grayson County Is a Top Choice for Investors

Economic and Tax Advantages

Grayson County’s economy is surging thanks to the semiconductor boom. Texas Instruments’ $30 billion plant and GlobiTech’s $5 billion wafer facility will bring thousands of high‑paying jobs and hundreds of millions of dollars in tax revenue. The county levies property taxes but has no state income tax, and Texas caps local government debt, creating a stable tax environment. Proximity to major transportation corridors and the Dallas‑Fort Worth metroplex attract manufacturers, logistics firms and retailers. This growth translates into higher property values and a larger pool of tax‑delinquent properties for investors to consider.

Real Estate Market Overview

Home construction is booming. The city of Sherman issued permits for over 4,000 new homes after the semiconductor announcements, and developers continue to build single‑family homes and multifamily complexes. Commercial real estate is also thriving, with new retail centers, restaurants and entertainment venues sprouting up to serve the growing population. The revitalization of downtown Sherman and Denison’s historic Main Street offers long‑term appreciation potential. For investors, these trends mean strong demand for finished properties and a healthy resale market once tax‑deed properties are cleared.

Conclusion

Grayson County’s combination of redeemable tax deeds, high statutory penalties, and a fast‑growing economy creates an attractive environment for tax deed investors. Auctions occur three times a year, and winning bids can yield returns up to 25–50% if owners redeem The county’s semiconductor boom, robust housing market and strategic location support property values and reduce downside risk. However, investors should always conduct thorough due diligence, understand redemption periods, and be prepared to pay quickly. By following the steps outlined here and staying informed through GovEase and county websites, you can navigate Grayson County’s tax deed sales with confidence.

Pro Tips

1. Register early: Sign up on GovEase and complete all documents well before the auction. Late registrations may not be approved.
   
2. Set a budget: Decide your maximum total spend and stick to it. Pre‑bidding helps control overbids.
   
3. Inspect properties: Drive by parcels or use mapping tools to avoid landlocked or unusable properties.
   
4. Check for homestead status: This determines whether the redemption period is 180 days or two years.
   
5. Plan for quiet title: If the property is not redeemed, budget time and money for a quiet‑title action before you resell or build.
   
6. Monitor upcoming sales: Subscribe to GovEase notifications and check the county website for updated lists and changes.
   

FAQs – Grayson County Tax Deeds

1. Do I take possession immediately after winning?
No. You receive a sheriff’s deed without warranty, but the property remains subject to the owner’s right of redemption. You cannot evict occupants until the redemption period expires and you have quieted the title.

2. How do I remove existing liens?
Some liens, such as county taxes included in the judgment, are wiped out. Others—like IRS liens, municipal liens or HOA dues—may survive. A quiet‑title action in court can clear these claims. Consult a real estate attorney for guidance.

3. Can I finance a tax deed purchase?
GovEase requires payment in full by 3 p.m. the day after the sale. Traditional mortgage lenders do not finance tax deed purchases, so be prepared to use cash or a line of credit.

4. What happens if the property is occupied?
You cannot remove occupants during the redemption period. Once the period expires and you have the deed, you may need to file for eviction or negotiate a move‑out. Always follow Texas eviction laws.5. What if the owner redeems the property?
If the owner pays the taxes, penalties and costs within the redemption period, you must relinquish your claim. In return, you receive your investment plus the statutory premium (25% or 50%)

Useful Links

• Auction Calendar
• How to Profit from Texas’s Redeemable Deeds
• Let’s talk about redeemable tax deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 
• Learn How to maximize profits at the Texas Tax Sales

Need a hand?

Grayson County’s tax-sale properties are now listed in our Auction Calendar. Take a look and explore our free resources to help you get started. If you’re unsure where to begin or what comes next, simply book a call for one-on-one guidance from an experienced pro.

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About Dustin Hahn

Dustin Hahn is a Tax Lien & Deed investor with over 22 years of experience and hundreds of deals under his belt. He created Tax Lien School.com to help you buy Tax Deeds up to 90% off mortgage free and earn up to 36% ROI with Tax Liens. This site was voted the “Most Useful Resource” for new investors. Dustin’s YouTube Channel is the #1 Channel on Tax Liens & Deeds with over 98,000 Subscribers and 3600 videos to help you start. “The Best Time To Start Real Estate Investing Was 20 Years Ago, The Second Best Time Is TODAY!”

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